How PNC's Gridiron Gamble Could Pay Off in

Chicago
ByJacobPassy
June8,2015

AnoutoftownbankhasputtheChicagomarketintoamultimilliondollarBearhug.
PNCFinancialServicesGroup,abigregionalbankbasedinPittsburgh,thisspringbecametheofficial
banksponsoroftheChicagoBearsprofessionalfootballteam.Analsoranindepositshareafter
enteringthemarketlessthanadecadeago,PNChopesthatteamingupwith"DaBears"willwinover
moreretailandbusinesscustomers.
PNChastakenitsleadfromotherbanksthathavealignedthemselveswithlocalsportsiconsafter
enteringnewmarketslikeM&T,aNewYorkbankthatusedafootballrelatedmarketingagreementto
blenditselfintotheBaltimoresceneafteramajoracquisition.
Sportssponsorshipsfellsomewhatoutoffavorduringtheyearsfollowingthefinancialcrisis,butthey
havereemergedasaleadingstrategyforbankslookingtoattractcustomerstotheirmobilebanking,
wealthmanagementandotherproductsinwaysotherthantraditionaladvertising.
Partneringwithasportsteamcanalterbanks'images,helpingthemstandoutamongamultitudeof
competitorsofferingsimilarproductsandservices.
"Banksdon'thavemuchofapersonalityandasponsorshipgivesapersonalitytothebrandname,"said
JedPearsall,presidentofPerformanceResearch,acompanythatspecializesinsponsorshipresearch
andanalytics.
However,marketingopportunitiesareexpensivepropositions,sobankslikethe$351billionassetPNC
havetobecarefulinthearrangementstheycarveouttoensuretheygettheirmoney'sworth.
PNC'sdealwhichhasmanyelements,butnostadiumnamingrightsisexpectedtocostitbetween
$25millionand$35millionforthedurationofthepartnership,whichcouldbeaslongas10
years,accordingtoTheChicagoTribune.PNCwouldnotconfirmthesefigures.
InsidetheDeal

Underagreement,theBears'headquarterswillberenamedPNCCenteratHalasHallthefirstnaming
rightsagreementinteamhistory.Thefacilityfeaturesabroadcaststudioandeventsspace.
Theteam'sgamedayhome,legendarySoldierField,maintainsitstraditionalname,butaseating
sectionwillbenamedthePNCSuitesatSoldierField.PNCwillalsohaveATMsatthestadium.
Additionally,theBearsorganizationwillusePNCforitsownbankingservicesPNCwillofferaffinity
cardsfortheBearsin2016andthebankwillsponsortheteam'smainandSpanishlanguageradio
broadcasts.
PNCisaveteranofmajorsportssponsorships.ItisalreadyapartneroftwootherNationalFootball
Leagueteams:theClevelandBrownsandthePittsburghSteelers.Thecompanyalsoholdsnaming
rightsforthePittsburghPirates'PNCParkandthePNCArenainRaleigh,N.C.,thehomeoftheNational
HockeyLeague'sCarolinaHurricanes.
ButthedealwiththeBearsarguablyhasmuchhigherstakes.PNCenteredtheChicagomarketby
buyingthetroubledNationalCityCorp.in2008.Beforebeingpurchased,NationalCitywasthefourth
largestbankinChicago,with$11.3billionindeposits.Today,PNCisNo.8intheChicagoareawithjust
$10.9billionindeposits.
What'smore,PNChasreplacedChicago'slargestbankbymarketshare,JPMorganChase,asthe
Bears'bankingpartner.
"ItwasclearfromthefirsttimewespokewiththeBearsthattheybelievetheycanhelpusdriverevenue
growthinallofourmajorbusinessareas,"ScottSwanson,PNCregionalpresidentforIllinois,saidinan
emailtoAmericanBanker."ThispartnershipwillhelpPNCrealizeourpotentialforgrowth."
Sponsoringasportsteamcanprovideaccesstootherteamsponsors,whichcanfacilitatebusiness
relationshipswithregionalstakeholders,accordingtoWilliamChipps,asenioreditoratsponsorship
researchfirmIEG.ButperhapsthebiggestreasonabanklikePNC,whichisbasedinanothercity,
wouldalignitselfwithaprosportsteamliketheBearsistoassertitsconnectionswithacommunity.
"Banksreallyhavetopositionthemselvesasdedicatedtocommunity,"Chippssaid."Ifacompanyis
movingintoanewmarketorspreading,apartnershipwithaprosportsteamisagreatwaytoletpeople
knowwhat'sgoingonhere."
TheM&TModel
Andperhapsnobankhasassertedacommunityconnectionthroughasportssponsorshipbetterthan
M&TBankwiththeBaltimoreRavens.M&TscorednamingrightsfortheRavens'stadiumin2003,
shortlyafteritacquiredBaltimore'ssecondlargestbankatthetime,AllfirstBank.
UsingtheconnectionwiththeRavenstointroduceitselftothecity,M&Tmanagedtobecomethelargest
bankbymarketshareinthecity.

WhenM&TcametoBaltimore"nobodyknewwhotheyweretheywerejustanotheroutsidebank,"
saidHoweBurch,presidentofTB&CAdvertising."Nowpeopleperceivethemtobeacommunitybank
eventhoughthey'rebasedoutofBuffalo,andthey'vedonethatbyleveragingaverystrongrelationship
inacommunitypartnerwiththeRavens."
BurchnotedthattheRavensarethedominantsportsfranchiseinBaltimore,havingwonaSuperBowl
andgarneredalotofgoodwill.
WhatmadeM&Tsosuccessful,though,isthatitcapitalizedonitsrelationshipwiththeRavensthrough
advertisingpushes,includingits"RaisetheGreenFlag"campaignandspecialoffersforBaltimore
residents,expertssaid.
"Ifyouspendallofyourbudgetjustonthenamingrightsandhavenothingtoactivateitwith,you've
madeabigmistake,"Pearsallsaid.
Still,foralltheirpositives,sportssponsorshipscanhavesomepitfalls.BurchwarnedthatPNCshouldbe
carefulaboutwhowithintheBearsfranchiseitchoosesasspokespeople,sincethatbecomesyet
anotherinvestment.
M&Tlearnedthislessonthehardway.TwooftheRavensspokesmenthatthebankchosewereRay
Rice,wholaterbecameembroiledinadomesticabusescandal,andHalotiNgata,whowastraded
away.
Afterthesemishaps,thebankeventuallychoseRavenscoachJohnHarbaughasitsteamspokesman,
Burchsaid,becausehehad"alongtermprovenrecordofsuccess."
Thosestumblesremainminorthough,andM&Tremainscommittedtotheteam,havingrenewedits
sponsorshiplastyearina$60milliondeal.
PNCofficialshopetolookbackonedayattheiragreementinChicagoandbeabletosayitdidwhatit
wassupposedtodo.
"Weareobviouslynotthebiggestbankintown,butweviewthisrelationshipasaplatformthatreaches
allourconstituenciesandholdsenormouspotential,"PNC'sSwansonsaid."Itwillhelpustowinin
Chicago."

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